Deutsche Property Asset Management (DPAM) chief executive Bill Hughes warned against the pitfalls of cross-border investment at the MIPIM property fund managers’ dinner last night.
“There are potentially greater and greater volumes of cross-border investment and there are some real risks in not relying on local expertise or partnerships,” said Hughes, in a speech at the annual event organised by developer Wrenbridge Land.
Hughes also raised concerns over the use of debt in property investment.
He said: “Across the property market there has been a steady increase in the levels of gearing being used. This is fine when interest rates and the cost of money remain low, but will potentially represent a systematic risk should interest rates rise significantly.”
References: EGi News 12/03/04
